Tax Options for the Second Obama Administration
Since the election, President Obama has reaffirmed his commitment to increasing marginal tax rates for upper income taxpayers while maintaining for lower income taxpayers the tax rates that have been in place since 2001. In addition, a spokesperson for the White House has stated that the President wants to increase tax revenue by $1.00 for every $2.50 that is cut from expenditures. The budget that the president proposed for the current fiscal year gives a sense of the kind of changes the administration is likely pursue. The basic theme is to reverse for upper income taxpayers the tax benefits conferred by the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation of 2003. Click here to read the entire paper from Nuveen.